As we say goodbye to 2021, the stock market will undoubtedly look back on this as the year of the meme stock mania. This phenomenon essentially flipped the script on investing. It also carried over into the crypto market. Meme tokens like Shiba Inu (CCC:SHIB-USD) have minted millionaires from chump change.
Though volatility remains a major concern, it appears that Shiba Inu is building up some use cases, which points to an even brighter 2022 for the altcoin.
As a crypto investor, Shiba Inu has not interested me so far. That is because I consider the use cases for a specific cryptocurrency before investing in it.
Thus far, Shiba Inu has been all hype, which is why I’ve shied away from it. However, with a string of positive developments recently, it appears that SHIB could gain long-term traction. Moreover, it is currently down due to tax-related selling, meaning it could rebound early next year.
Shiba Inu Gaining Traction in the Real World
Although it started as a joke, Shiba Inu is currently the 13th largest cryptocurrency by market cap, according to CoinMarketCap. It’s also seeing growing acceptance as payment and on trading platforms.
Earlier this week, Canadian telehealth company Ask the Doctor said it had added $1.5 million in Shiba Inu to its balance sheet because it plans to accept the cryptocurrency as payment. Movie theater chain AMC Entertainment (NYSE:AMC) also said it will accept SHIB as payment starting sometime in the next few months.
Moreover, traders can now buy SHIB on some of the biggest crypto exchanges. In September, Coinbase Global (NASDAQ:COIN) added the dog-themed token to its exchange. Kraken, another top U.S.-based crypto exchange, greenlit SHIB to be traded on its platform in November. These platforms allow traders to buy Shiba Inu with fiat currencies such as the U.S. dollar.
Speculation is building that Shiba Inu will be added to Robinhood’s (NASDAQ:HOOD) trading platform. Robinhood’s customers have been calling for it — loudly — and management is likely to succumb to pressure. There are some regulatory concerns, but if Robinhood’s retail trading army gets the ability to trade Shiba Inu, the price is likely to skyrocket, especially given SHIB’s tight float.
Furthermore, according to Shiba Inu’s creator Ryoshi, the crypto is forming its own metaverse, which it calls the Oshiverse. “We are working on so many aspects of Shiba Inu including Shibarium, Shi, Shibanet, The Decentralized Shiboshi Game, Incubator and much more that won’t become evident until the near future,” Ryoshi said.
The Bottom Line on Shiba Inu
Shiba Inu has been a monster performer, gaining a dumbfounding 47,300,000% so far this year and providing a lucky few with life-altering profits. Yet, the extreme volatility in the altcoin has resulted in gains disappearing almost as quickly as they appear. The aggressive price fluctuations are not surprising given that Shiba’s value is based on factors other than utility, namely fear of missing out and social media momentum.
As long as this is the case, getting to 1 cent seems like a tough ask. However, if Shiba Inu’s use cases expand, we could see some of this volatility subside and its price make a sustained move higher.
If it continues to gain acceptance as payment in the real world and is offered on more trading platforms, we could be looking at a new Shiba Inu in the coming years. I expect SHIB to have a fascinating, and hopefully more stable, year ahead.
On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.
